In deep fat fryer or heavy saucepan, heat 3 inches oil over medium-high heat to 350°F.
In large bowl, mix Bisquick™ mix, cold water, egg, sugar and cinnamon. Fold in peaches.
Drop dough by rounded tablespoonfuls into hot oil; fry 2 to 3 minutes on each side until golden brown. Remove from oil with slotted spoon; place on paper towel-lined plate to drain. Sprinkle with powdered sugar, and serve.
You can use frozen peaches. Do not thaw before using.